EURUSD – Euro Nosedives Vs Dollar As Market Settles Down

EURUSD – Euro Nosedives Vs Dollar As Market Settles Down

Key Highlights

  • The Euro after trading as high as 1.1299 against the US Dollar found sellers and moved down.
  • There was a bullish trend line formed on the hourly chart of EURUSD, which was broken during the downside move at 1.1020.
  • Today, the Chinese Retail Sales report released by the National Bureau of Statistics of China posted a rise of 10% in Oct 2016, which was a bit less than the forecast of 10.7%.
  • Later today, the Euro Area Industrial Production will be released by the Eurostat, which is forecasted to decrease by 1% in Sep 2016, compared with Aug 2016.

EURUSD Technical Analysis

The Euro enjoyed a good run towards the 1.1300 handle this past week against the US Dollar, and posted gains. Later, the EURUSD pair found sellers, moved down, and currently remains under a bearish pressure.

EURUSD Technical Analysis

During the downside move, the pair broke a couple of important support levels, including a bullish trend line formed on the hourly chart at 1.1020. Moreover, the pair also broke the 100 and 200 hourly simple moving average, opening the doors for more losses towards 1.0800.

The pair traded as low as 1.0775, and currently correcting higher. Any recover from the current levels may be limited, and could find sellers near 1.0800 and 1.0840. The hourly RSI is also under pressure, suggesting the Euro sellers are in control.

Chinese Retail Sales

Today in China, the Retail Sales report, which measures the total receipts of the retailed consumer goods was released by the National Bureau of Statistics of China. The market was aligned for a rise of 10.7% in Oct 2016, compared with the same month a year ago.

The outcome was a bit lower, as the Chinese Retail Sales posted an increase of 10%. It was also on the lower side when compared with the last increase of 10.7%. The Chinese Industrial output was also released today, which was forecasted to increase by 6.2% in Oct 2016, compared with the same month a year ago. The result was lower, as there was a rise of 6.1%. However, the last reading was also an increase of 6.1%.

Overall, the reports were more in the line of the forecast, but may fail to help the risk sentiment.



Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

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